Regulatory Alerts2022-06-01
Regulation 81-105 Respecting Mutual Fund Sales Practices
Issued under the Securities Act, this regulation establishes comprehensive rules governing mutual fund sales practices, including strict prohibitions on inducements and mandatory suitability determinations. It defines permitted compensation structures, such as trailing commissions, while banning incentives that favor specific fund families over others. The document further regulates marketing and educational activities by setting limits on cost-sharing for conferences and restricting the provision of non-monetary benefits to ensure industry integrity.
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